Written by Kevin Hill | NJHousePartners.com
As we move through what’s typically the hottest stretch of the real estate calendar, something unusual is happening: inventory is rising, home price growth is slowing, and buyers in New Jersey may finally be getting a little breathing room.
According to Zillow’s March 2025 market report, national housing inventory jumped 19% year-over-year, and home price appreciation has slowed to its lowest March pace since at least 2018. While these trends reflect national patterns, they’re particularly relevant to New Jersey — where affordability has long been a barrier and tight inventory has squeezed both first-time buyers and downsizers alike.
Let’s break down what this means for the Garden State’s housing market.
📈 Inventory Is Rising – But Still Below Pre-Pandemic Norms
Across the U.S., over 375,000 homes hit the market in March — a 9% increase from the same time last year. While that’s still 19% below pre-pandemic levels, it’s a strong sign of recovery.
New Jersey follows a similar trend, with more homes entering the market across Bergen, Passaic, Morris, and Monmouth Counties. This is especially good news for buyers who were stuck with slim pickings last spring.
Zillow reports that total active inventory in March was up 19.3% nationally, and we’re seeing that reflected in New Jersey’s MLS as well — with many towns experiencing double-digit listing growth compared to early 2024.
📝 Translation for NJ buyers: You finally have more options. If you’ve been waiting out the market due to lack of choice or intense competition, now may be the time to re-engage.
💰 Home Prices Are Still Up — But Slowing
The typical U.S. home value rose just 0.2% month-over-month in March, a dramatic slowdown compared to the usual spring surge. Annual price growth stands at just 1.2% — positive, but not nearly as aggressive as what we saw between 2020 and 2022.
In New Jersey, home values are still climbing, particularly in sought-after commuter towns. According to Zillow, the New York metro area — which includes northern NJ suburbs — saw a 4.8% year-over-year gain, placing it among the top-performing large metros.
But sellers beware: while values are holding, the pace of growth is cooling. That means homes priced based on 2022 peak expectations may need adjustments to meet today’s buyer demand.
📊 Local Insight: Price growth is strongest in desirable Bergen County towns like Ridgewood, Montvale, and Glen Rock, but even here, buyers are pushing back on overpricing.
🏡 Sellers Are Returning to the Market — But Buyers Aren’t Keeping Pace
One of the biggest takeaways from Zillow’s report is the disconnect between seller and buyer activity. Nationally, about 375,000 homes were listed, but only 265,000 went under contract — meaning 110,000 homes didn’t find buyers in March.
This same trend is showing up in New Jersey. Even with slightly lower mortgage rates (averaging 6.65% in March vs. 6.82% a year ago), buyers are still cautious. High home prices combined with inflation and stagnant wages continue to make affordability a top concern.
⚠️ Watch this trend: If seller activity continues to outpace buyer demand, we could see even more price cuts and negotiating room heading into summer.
📉 Price Cuts Are on the Rise
Zillow reports that 23.5% of listings nationally had a price cut in March, the highest share for any March since 2018. That’s a clear signal that the market is adjusting to buyer pushback.
We’re seeing the same in New Jersey — especially in areas where homes were aggressively priced early in the season. In parts of Morris, Union, and Essex Counties, price reductions have become more common as days on market increase.
💡 For sellers: Proper pricing is more important than ever. Today’s buyers are well-informed and patient. Overpricing can lead to sitting on the market and ultimately netting less.
🏦 Affordability Is Still a Challenge
Despite slight improvements, housing affordability remains a major issue in New Jersey. Nationally, a typical mortgage payment in March 2025 required about 35.3% of median household income — above the 30% threshold that signals a financial burden.
In New Jersey, the situation is often worse. With home prices above the national average in most counties, buyers are still struggling to bridge the gap — especially with a typical 20% down payment approaching $90,000 in many towns.
🔥 Hot take: Don’t expect a buyer frenzy just because mortgage rates dipped slightly. Affordability will remain a drag on demand throughout 2025 — unless incomes rise or prices adjust.
🧊 Market Is Cooling, But Still Competitive in NJ Hot Spots
Zillow’s Market Heat Index places the national market slightly in sellers’ territory, but some cities are clearly shifting toward balance or even favoring buyers. In New Jersey, it’s a mixed bag:
- Bergen County and parts of Middlesex remain competitive with multiple offers in prime neighborhoods
- Other towns, especially those farther from transit hubs, are starting to see longer days on market and more negotiable deals
The median time to pending sale was 17 days in March, but in NJ, that can range from under a week in Montclair or Hoboken to over 45 days in parts of Sussex or Warren County
🏁 Bottom Line: What It Means for Buyers and Sellers in NJ
For buyers:
- You have more choices than you did last year
- Less competition means more room to negotiate
- But affordability is still tight, so plan your budget carefully and consider towns with better value
For sellers:
- List now if you’re ready — inventory is rising and waiting may mean more competition
- Be realistic on price, especially if your home is older or lacks updates
- Strategic pricing and professional marketing are essential to attract serious buyers
Need Help Navigating the Shifting NJ Market?
Whether you’re buying, selling, or just testing the waters, I’m here to help you make sense of it all. As a local expert specializing in both traditional sales and distressed properties, I provide smart strategies tailored to your situation — no pressure, just real options.
📞 Call/text Kevin Hill at 201-214-1349 or visit NJHousePartners.com to get started.
Keller Willams Valley Realty
123 Tice Blvd, Woodcliff Lake, NJ 07677